Running a barbershop means managing a lot more than just cuts and fades. You've got expensive equipment, inventory, customer traffic, and the constant risk that something could go wrong—a client slips on a wet floor, a fire damages your space, or someone claims your clippers caused an infection. That's where a Business Owners Policy comes in. Think of it as the insurance equivalent of a combo deal: you get essential coverages bundled together at a discount, specifically designed for small business owners like you.
Here's what you need to know about whether a BOP makes sense for your barbershop, what's actually covered, and what you'll still need to buy separately.
What Exactly Is a Business Owners Policy?
A BOP packages three core coverages into one policy: general liability insurance, commercial property insurance, and business interruption coverage. Instead of buying each separately, you get them bundled—and you typically save 10-15% compared to purchasing them individually. For barbershop owners, this is particularly attractive because you face both liability risks (customers getting injured in your shop) and property risks (expensive chairs, mirrors, clippers, and retail inventory).
General liability covers bodily injury and property damage you cause to others. If a customer trips over a power cord and breaks their ankle, or if you accidentally damage a landlord's wall while installing new shelving, general liability steps in to cover medical bills, legal fees, and settlements. Commercial property insurance protects your physical assets—your barber chairs, styling stations, clippers, scissors, hair products, and even your cash register. If there's a fire, theft, or vandalism, this coverage helps you replace or repair what's damaged.
Business interruption insurance is the coverage most shop owners forget about until they need it. Let's say a burst pipe floods your shop and you have to close for two weeks while repairs happen. You're not making money, but you still have rent, loan payments, and possibly payroll to cover. Business interruption coverage replaces lost income during these forced closures, keeping you financially afloat while you get back up and running.
When Does a BOP Make Sense for Your Barbershop?
BOPs are designed for small to medium-sized businesses, and most insurers have revenue limits—typically between $5 million and $10 million in annual sales. For most barbershops, this isn't an issue. If you're running a single-location shop with a handful of chairs and generating under a million dollars a year, you're squarely in BOP territory.
A BOP makes the most sense if you operate out of a commercial space (not your home), have significant equipment and inventory to protect, and want liability coverage without the hassle of managing multiple policies. It's especially cost-effective if you're leasing your space, since you'll want protection for both your assets and any liability claims that could arise from day-to-day operations.
However, if you run a home-based barbershop, a standard BOP might not be the right fit. Most homeowners insurance policies explicitly exclude business activities, and a commercial BOP might be overkill (and overpriced) for a small home operation. In that case, you might look into a home-based business policy or an in-home business endorsement on your homeowners insurance instead.
What's Not Covered by a BOP
Here's where things get tricky. A BOP covers a lot, but it doesn't cover everything. Professional liability (also called errors and omissions insurance or malpractice) is not included. If a client claims you gave them a bad chemical treatment that caused a scalp infection, or alleges you were negligent in some way that resulted in harm, you'll need separate professional liability coverage. This is particularly important if you offer services beyond basic haircuts—things like shaving, beard trims with straight razors, or chemical treatments like relaxers and perms.
Workers' compensation is another big exclusion. If you have employees (even just one), most states require you to carry workers' comp insurance separately. This covers medical expenses and lost wages if an employee gets injured on the job—say, if one of your barbers slips while cleaning up hair or develops carpal tunnel from years of cutting. A BOP won't cover this. You'll need a standalone workers' comp policy.
Commercial auto insurance is also excluded if you use a vehicle for business purposes—like traveling to client homes for mobile haircuts or picking up supplies. Your personal auto policy likely won't cover business use, so if this applies to you, add commercial auto to your insurance portfolio. Finally, cyber liability isn't typically part of a BOP. If you collect customer information electronically (names, phone numbers, payment details), a data breach could expose you to lawsuits and regulatory penalties. Some insurers offer cyber liability as an add-on to a BOP, but it's not automatically included.
How Much Does a BOP Cost for a Barbershop?
The cost of a BOP varies based on several factors: your location, annual revenue, the value of your equipment and inventory, the size of your space, how many employees you have, and what additional services you offer. On average, barbershop owners pay between $500 and $1,500 per year for a BOP. Urban locations with higher crime rates or more expensive real estate tend to see higher premiums. Offering services like straight-razor shaves or chemical treatments can also bump up your cost because they increase your liability exposure.
Insurers also look at your claims history. If you've had multiple claims in the past, you'll likely pay more. Conversely, if you've been in business for years without a single claim, you might qualify for discounts. Some insurers offer additional discounts if you bundle your BOP with other policies (like workers' comp or commercial auto), or if you have safety measures in place—things like security cameras, fire alarms, or slip-resistant flooring.
How to Get Started with a BOP
Shopping for a BOP is straightforward, but you'll want to compare quotes from multiple insurers to find the best coverage at the best price. Start by gathering information about your business: your annual revenue, the value of your equipment and inventory, square footage of your shop, number of employees, and any additional services you offer. This will help insurers give you accurate quotes.
You can get quotes directly from major commercial insurers like The Hartford, Nationwide, or Hiscox, or work with an independent insurance agent who can shop multiple carriers for you. Independent agents are particularly helpful if you have a unique situation—like multiple locations, a home-based shop, or specialized services—because they can find insurers who specialize in your type of business.
When reviewing quotes, don't just look at the premium. Pay attention to coverage limits, deductibles, and exclusions. A cheaper policy might have lower liability limits or higher deductibles, which could leave you underinsured if something serious happens. Make sure your property coverage is high enough to replace all your equipment and inventory, and that your liability limits are sufficient to protect your personal assets if you're sued.
A Business Owners Policy is one of the smartest investments you can make as a barbershop owner. It simplifies your insurance, saves you money, and gives you the peace of mind that comes with knowing your business is protected. Take the time to compare quotes, understand what's covered (and what's not), and make sure you're getting the coverage you actually need. Your barbershop is your livelihood—protect it accordingly.
